Is mediation required for a Fitstop dispute involving a violation of federally protected intellectual property rights?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
The Parties will not be required to first attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 19.2 ifsuch controversy, dispute, or claim concerns an allegation that a Party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, System, or in any Confidential Information or other intellectual property rights associated with the same; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, mediation is not required if the dispute involves a violation of federally protected intellectual property rights. Fitstop has the option to require mediation for disputes, but this does not apply to allegations of intellectual property rights violations.
Specifically, Fitstop is not required to attempt mediation if a claim concerns an allegation that a party has violated, threatens to violate, or poses an imminent risk of violating any federally protected intellectual property rights in the Proprietary Marks, System, or in any Confidential Information or other intellectual property rights associated with the same. This means Fitstop can pursue legal action directly without first going through mediation in such cases.
This exception to mediation is significant for prospective Fitstop franchisees because it clarifies the legal recourse available to Fitstop in cases of intellectual property infringement. It allows Fitstop to act swiftly to protect its brand and proprietary information, which is a common practice in franchising to maintain brand standards and protect the franchise system. Franchisees should be aware of this provision and ensure they fully understand and respect Fitstop's intellectual property rights to avoid potential legal disputes.